The Belgian Presidency of the Council of the EU is seeking a compromise with the Member States on the new ‘FASTER’ withholding tax procedure for cross-border financial income, with a view to reaching a political agreement at the next Ecofin Council on Tuesday 14 May (see EUROPE 13360/13).
The text was discussed at the meeting of Member States’ ambassadors to the EU on Wednesday 8 May. According to a European source contacted after the meeting, an agreement is “possible”. However, one main issue remains unresolved: the market capitalisation ratio, as a small number of Member States have reserves. This is one of the criteria that would allow Member States not to apply “fast track” procedures. “This is new compared to the European Commission’s proposal”, explained the source. Some States want this ratio to be higher, at 2% instead of 1%, so that they can withdraw more easily.
Similarly, the Presidency has set at €100,000 the threshold referred to in Article 10, based on the gross amount of dividends above which Member States may not apply the accelerated procedures.
“The Presidency will try to reach an agreement in the days leading up to the Council or, if necessary, on the day of the Council meeting”, the source emphasised. (Original version in French by Anne Damiani)